Your letter should include a concise factual summary of the accident, an overview of your damages, your settlement demand, and not much more. In this comprehensive guide, we'll walk you through an example car accident settlement letter and break down its key elements.Learn about cash settlements in your case and how they are accepted and approved. David Azizi explains the process of cash settlement acceptance. Below is an example of a car insurance demand letter. Make sure to tailor it to your own accident and situation. Below is a sample demand letter for an auto accident case. A car accident settlement letter is a formal written communication aimed at resolving a dispute amicably before proceeding to litigation. A car accident settlement letter is a formal document sent to an insurance company, outlining your claim for compensation following a motor vehicle accident. A lawsuit is a claim or dispute brought to a court of law to resolve.